| 1. | Employment; Term. The      Company hereby agrees to employ the Executive and the Executive hereby      accepts employment with the Company upon the terms and conditions      hereinafter set forth for the period commencing on April 18, 2008 (the      “Effective      Date”)and ending on the first      anniversary of such date. The term of this Agreement shall be      automatically extended for an additional year on each anniversary of the      date hereof unless written notice of non-extension is provided by either      party to the other party at least 90 days prior to such anniversary. The      period of the Executive’s      employment under this Agreement, as it may be terminated or extended from      time to time as provided herein is referred to as the “Employment      Period.” |
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|   | a. | Position and Duties Generally.      The Executive shall be employed by the Company in the position of      Senior Vice President, Business Development & Strategie Planning and      shall faithfully render such executive, managerial, administrative and      other services as are customarily associated with and incident to such      position and as the Company may from time to time reasonably require      consistent with such position. The Executive shall report to the President      and CEO, David P. Wright. |
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|   | b. | Other Positions. The      Executive shall hold such other positions and executive offices with the      Company and/or of any of the Company’s subsidiaries or affiliates as may      from time to time be authorized by the Board. The Executive shall not be      entitled to any compensation other than the compensation provided for      herein for serving during the Employment Period in any other office or      position of the Company or any of its subsidiaries or affiliates, unless      the Compensation Committee specifically approves such additional      compensation. |
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|   | c. | Devotion to Employment.      Except for vacation time taken in accordance with the Company’s      vacation policy in effect from time to time and in accordance with the      terms of this Agreement and for absences due to temporary illness, the      Executive shall be a full-time employee of the Company and shall devote      full time, attention and efforts during the Employment Period to the      business of the Company and the duties required of him in his position.      During the Employment Period, the Executive shall not be engaged in any      other business activity which, in the reasonable judgment of the      Board or its designee, conflicts with the duties of the Executive      hereunder, whether or not such activity is pursued for gain, profit or      other pecuniary advantage. |
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| 3.  | Compensation;      Reimbursement. |
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|   | a. | Base Salary. For the      Executive’s services, the Company shall pay to the Executive an annual      base salary of not less than $275,126.00 per annum, payable in equal      periodic installments according to the Company’s customary payroll      practices, but no less frequently than monthly. The Executive’s base      salary shall be subject to review annually by the Compensation Committee      and shall be subject to increase at the option and sole discretion of the      Compensation Committee. |
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|  | b. | Bonus. The Executive      shall be eligible to receive at the sole discretion of the Compensation      Committee, an annual cash bonus of up to an additional 30% of the      Executive’s base salary. In addition, the Executive may be eligible for      additional bonuses at the option and sole discretion of the Compensation      Committee based upon based upon the achievement of certain pre-determined      performance milestones. |
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|  | c.  | Benefits      Generally. |
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|   | i. | In      addition to the salary and cash bonus described above, the Executive shall      be entitled during the Employment Period to participate in such employee      benefit plans and programs of the Company, and shall be entitled to such      other fringe benefits, as are from time to time made available by the      Company generally to employees of the level, position, tenure, salary,      age, health and other qualifications of the Executive including, without      limitation, medical, dental and vision insurance coverage for the      Executive and the Executive’s dependents, disability, death benefit and      life insurance and pension plans. |
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|  | ii. | Without      limiting the generality of the foregoing, the Executive shall be eligible      for such awards, if any, including stock and stock options under the      Company’ s 2007 Long-Term Incentive Plan or such other plan as the Company      may from time to time put into effect as shall be granted to the Executive      by the Compensation Committee or other appropriate designee of the Board      acting in its solediscretion. |
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|  | iii. | The      Executive acknowledges and agrees that the Company does not guarantee the      adoption or continuance of any particular employee benefit plan and      participation by the Executive in any such plan or program shall be      subject to the rules and regulations applicable  thereto. |
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|  | d. | Vacation. The Executive      shall be entitled to 20 days of vacation in each calendar      year. |
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|   | e. | Expenses. The Company      shall reimburse the Executive in aecordance with the practices in effect      from time to time for other officers or staff personnel of the Company for      all reasonable and necessary business and travel expenses and other      disbursements incurred by the Executive for or on behalf of the Company in      the performance of the Executive’s duties hereunder, upon presentation by      the Executive to the Company of appropriate supporting      documentation. |
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|   | f. | Perquisites. The      Executive shall be entitled to those perquisites as the Company shall make      available from time to time to other executive officers of the Company,      which shall include, without limitation, the costs associated with the use      of an automobile in an amount not to exceed $1,000 per month and the costs      for Executive’s use of a cellular telephone and personal digital assistant      to the extent such equipment is used for business  purposes. |
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| 4. | Death; Disability. In      the event that the Executive dies or is incapacitated or disabled by      accident, sickness or otherwise, so as to render the Executive mentally or      physically incapable of performing the services required to be performed      by the Executive under this Agreement for a period that would entitle the      Executive to qualify for long-term disability benefits under the Company’s      then-current long-term disability insurance program or, in the absence of      such a program, for a period of 120 consecutive days or longer (such      condition being herein referred to as a “Disability”)then (i) in the case of the      Executive’s death, the Executive’s employment shall be deemed to terminate      on the date of the Executive’s death and (ii) in the case of a Disability,      the Company, at its option, may terminate the employment of the Executive      under this Agreement immediately upon giving the Executive notice to that      effect. The determination to terminate the Executive in the event of a      Disability shall be made by the Board or the Board’s designee. In the case      of a Disability, until the Company shall have terminated the Executive’s      employment hereunder in accordance with the foregoing, the Executive shall      be entitled to receive compensation provided for herein notwithstanding      any such physical or mentaldisability. |
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| 5. | Termination      For Cause. The Company may terminate the employment of the      Executive hereunder at any time during the Employment Period for “cause”      (such termination being herein referred to as a “Termination      for Cause”)by giving the Executive notice      of such termination, which termination shall be effective on the date of      such notice or such later date as may be specified by the Company. For      purposes of this Agreement, “Cause”means (i) the Executive’s      willful and substantial misconduct that is materially injurious to the      Company and is either repeated after written notice from the Company      specifying the misconduct or is continuing and not corrected within 20      days after written notice form the Company specifying the misconduct, (ii)      the Executive’s repeated neglect of duties or failure to act which can      reasonably be expected to affect materially and adversely the business or      affairs of the Company after written notice from the Company specifying      the neglect or failure to act, (iii) the Executive’s material breach of      any of the agreements contained in Sections 11,12, 13 or 14 hereof or of      any of the Company’s policies, (iv) the commission by the Executive of any      material fraudulent act with respect to the business and affairs of the      Company, (v) the Executive’s conviction of (or      plea of nolo contendere to) a crime constituting a felony, (vi)      demonstrable gross negligence, or (vii) habitual insobriety or use of      illegal drugs by the Executive while performing the Executive’s duties      under this Agreement which adversely affects the Executives Performance of      the Executive’s duties under this      Agreement. |
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| 6. | Termination Without Cause.      The Company may terminate the employment of the Executive hereunder      at any time without “cause” or fail to extend this Agreement pursuant to      the terms hereof (such termination being herein referred to as “Termination      Without Cause”)by giving the Executive notice      of such termination, upon the giving of which such termination shall take      effect not later than 30 days from the date such notice is      given. |
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| 7. | Voluntary Termination by      Executive. Any termination of the employment of the Executive by      the Executive otherwise than as a result of death or Disability or for      Good Reason (as defined below) (such termination being herein referred to      as “Voluntary      Termination”). A Voluntary Termination will      be deemed to be effective immediately upon such    termination. |
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| 8. | Termination      by Executive for Good Reason. Any termination of the employment of      the Executive by the Executive for Good Reason which shall be deemed to be      equivalent to a Termination without Cause. For purposes of this Agreement      “Good      Reason”means  (i) any      material breach by the Company of any of its obligations under this      Agreement, (ii)      any material reduction in the Executive’s duties, authority or      responsibilities without the Executive’s consent, (iii) any assignment to      the Executive of duties or responsibilities materially inconsistent with      the Executive’s position and duties contained in this Agreement without      the Executive’s consent, (iv) a relocation of the Company’s principal      executive offices or the Company determination to require the Executive to      be based anywhere other than within 25 miles of the location at which the      Executive on the date hereof performs the Executive’s duties; (v) the      taking of any action by the Company which would deprive the Executive of      any material benefit plan (including, without limitation, any medical,      dental, disability or life insurance); or (vi) the failure by the Company      to obtain the specific assumption of this Agreement by any successor or      assignee of the Company or any person acquiring substantially all of the      Company’s assets; provided, however, that the Executive may not terminate      the Employment Period for Good Reason unless the Executive first provides      the Company with written notice specifying the Good Reason and providing      the Company with 20 days in which to remedy the stated      reason. |
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|  | a.   | Voluntary      Termination; Termination For Cause. Upon the termination of the      Executive’s employment as a result of the Executive’s Voluntary      Termination or a Termination For Cause, the Executive shall not have any      further rights or claims against the Company under this Agreement except      the right to receive (i) the unpaid portion of the base salary provided      for in Section 3(a) hereof, computed on a pro rata basis to the date of      termination, (ii) payment of the Executive’s accrued but unpaid amounts      and extension of applicable benefits in accordance with the terms of any      incentive compensation, retirement, employee welfare or other employee      benefit plans      or programs of the Company in which the Executive is then participating in      accordance with the terms of such plans or programs, and (iii)      reimbursement for any expenses for which the Executive shall not have      theretofore been reimbursed as provided in Section 3      hereof. |
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|   | b. | Termination Without Cause;      Termination for Good Reason. Upon the termination of the      Executive’s employment as a result of a Termination Without Cause or for      Good Reason, the Executive shall not have any further rights or Claims      against the Company under this Agreement except the right to reeeive (i)      the payments and other rights provided for in Section 9(a) hereof and (ii)      severance payments in the form of a continuation of the Executive’s base      salary as in effect immediately prior to such termination for a period of      12 (twelve) months following the effective date of such termination. To      the extent that severance payments shall be payable under this Agreement      such payments shall be in consideration for and only after the Executive      executes a General Release containing terms reasonably satisfactory to the      Company. |
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|   | c. | Death and Disability.      Upon the termination of the Executive’s employment as a result of      death or Disability, neither the Executive nor the Executive’s      beneficiaries or estate shall have any further rights or claims against      the Company under this Agreement except the right to reeeive the payments      and other rights provided for in Section 9(a)  hereof. |
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|   | d. | Forfeiture of Rights. In      the event that, subsequent to termination of employment hereunder, the      Executive (i) breaches any of the provisions of Sections 11, 12,13 or 14      hereof or (ii) makes or facilitates the making of any adverse public      Statements or disclosures with respect to the business or securities of      the Company, all payments and benefits to which the Executive may      otherwise have been entitled shall immediately terminate and be forfeited,      and any portion of such amounts as may have been paid to the Executive      shall forthwith be returned to theCompany. |
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| 10.   | Disclosure of Confidential      Information. The Executive shall not, directly or indirectly, at      any time during or after the Employment Period, disclose to any person,      firm, corporation or other business entity, except as required by law, or      use for any purpose except in the good faith Performance of the      Executive’s duties to the Company, any Confidential Information (as herein      defined). For purposes of this Agreement, “Confidential      Information”means all trade secrets and      other non-public Information of a business, financial, marketing,      technical or other nature pertaining to the Company or any subsidiary,      including Information of others that the Company or any subsidiary has      agreed to keep confidential; provided, however, that Confidential      Information shall not include any Information that has entered or enters      the public domain (other than through breach of the Executive’s      obligations under this Agreement) or which the Executive is required to      disclose by law or legal process. Upon the Company’s request at any time,      the Executive shall immediately deliver to the Company all materials in      the Executive’s possession which contain Confidential      Information. |
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| 11.  | Restrictive      Covenant. |
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|   | a. | Term of Restrictive Covenant.      The Executive hereby acknowledges and recognizes that, during the      Employment Period, the Executive shall be privy to trade secrets and      Confidential Information critical to the Company’s business and the      Executive further acknowledges and recognizes that the Company would find      it extremely difficult or impossible to replace the Executive and,      accordingly, the Executive agrees that, in consideration of the benefits      to be received by the Executive hereunder, the Executive shall not, from      and after the date hereof, throughout the Employment Period, and for a      period of 12 months following the termination of the Employment Period (i)      directly or indirectly engage in the development, production, marketing or      sale of products that compete (or, upon commercialization, would compete)      with products of the Company being developed (so long as such development      has not been abandoned), marketed or sold at the time of the termination      of the Employment Period (such business or activity being herein referred      to as a “Competing      Business”)whether such engagement shall      be as an officer, director, owner, employee, partner, affiliate or other      participant in any Competing Business, (ii) assist others in engaging in      any Competing Business in the manner described in the foregoing clause      (i), or (iii) induce other employees of the Company or any subsidiary      thereof to terminate their employment with the Company or any subsidiary      thereof or engage in any Competing Business or hire any employees of the      Company or any subsidiary unless such persons have not been employees of      the Company for at least 12 months. |
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|  | b. | Sufficient Consideration.      The Executive understands that the foregoing restrictions may limit      the ability of the Executive to earn a livelihood in a business similar to      the business of the Company, but nevertheless believes that the Executive      has received and shall receive sufficient consideration and other      benefits, as an employee of the Company and as otherwise provided      hereunder, to justify such restrictions which, in any event (given the      education, skills and ability of the Executive), the Executive believes      would not prevent the Executive from earning a  living. |
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| 12. | Non-Disparagement. The      Executive shall not engage in conduct, through word, act, gesture or other      means, or disclose any Information to the public or any third party which      (i) directly or indirectly discredits or disparages in whole or in part      the Company, its subsidiaries, divisions, affiliates and/or successors as      well as the products and the respective officers, directors, stockholders      and employees of each of them; (ii) is detrimental to the reputation,      character or Standing of these entities, their products or any of their      respective officers, directors, stockholders and/or employees; or (iii)      which generally reflects negatively on the management decisions, strategy      or decision-making of theseentities. |
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| 13. | Company Right to Inventions.      The Executive shall promptly disclose, grant and assign to the      Company, for its sole use and benefit, any and all inventions,      improvements, technical information and suggestions relating in any way to      the business of the Company which the Executive may develop or acquire      during the Employment Period (whether or not during usual working hours),      together with all patent applications, letters patent, copyrights and      reissues thereof that may at any time be granted for or upon any such      invention, improvement or technical information. In connection therewith:      (i) the Executive shall, without charge, but at the expense of the      Company, promptly at all times hereafter execute and deliver such      applications, assignments, descriptions and other instruments as may be      necessary or proper in the opinion of the Company to vest title to any      such inventions, improvements, technical information, patent applications,      patents, copyrights or reissues thereof in the Company and to enable it to      obtain and maintain the entire right and title thereto throughout the      world, and (ii) the Executive shall render to the Company, at its expense      (including a reasonable payment for the time involved in case the      Executive is not then in its employ), all such assistance as it may      require in the prosecution of applications for said patents, copyrights or      reissues thereof, in the prosecution or defense of interferences which may      be declared involving any said applications, patents or copyrights and in      any litigation in which the Company may be involved relating to any such      patents, inventions, improvements or technical  information. |
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| 14. | Enforcement. It is the      desire and intent of the parties hereto that the provisions of this      Agreement be enforceable to the füllest extent permissible under the laws      and public policies applied in each jurisdiction in which enforcement is      sought. Accordingly, to the extent that a restriction contained in this      Agreement is more restrictive than permitted by the laws of any      jurisdiction where this Agreement may be subject to review and      interpretation, the terms of such restriction, for the purpose only of the      operation of such restriction in such jurisdiction, shall be the maximum      restriction allowed by the laws of such jurisdiction and such restriction      shall be deemed to have been revised accordingly  herein. |
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| 15.  | Remedies;      Survival. |
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|   | a. | Injunctive Relief. The      Executive acknowledges and understands that the provisions of the      covenants contained in Sections 11, 12, 13 and 14 hereof, the violation of      which cannot be accurately compensated for in damages by an action at law,      are of crucial importance to the Company, and that the breach or      threatened breach of the provisions of this Agreement would cause the      Company irreparable harm. In the event of a breach or threatened breach by      the Executive of the provisions of Sections 11, 12, 13 or 14 hereof, the      Company shall be entitled to an injunction restraining the Executive from      such breach. Nothing herein contained shall be construed as prohibiting      the Company from pursuing any other remedies available for any breach or      threatened breach of thisAgreement. |
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|   | b. | Survival.      Notwithstanding anything contained in this Agreement to the      contrary, the provisions of the Sections 3, 9, and 11 through 17 hereof      shall survive the expiration or earlier termination of this Agreement      until, by their terms, such provisions are no longer      operative. |
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| 16.   | Notices. Notices and      other communications hereunder shall be in writing and shall be delivered      personally or sent by air courier or first class certified or registered      mail, return receipt requested and postage prepaid, addressed as      follows: |
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| 18. | Binding Agreement; Benefit.      The provisions of this Agreement shall be binding upon, and shall      inure to the benefit of, the respective heirs, legal representatives and      successors of the partieshereto. |
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| 19. | Governing Law; Jurisdiction.      This Agreement shall be governed by, and construed and enforced in      accordance with, the laws of the State of Maryland applicable to contract      made and to be performed therein. Any action to enforce any of the      provisions of this Agreement shall be brought in a court of the State of      Maryland or in Federal court located within that State. The parties      consent to the jurisdiction of such courts and to the service of process      in any manner provided by Maryland law. Each party irrevocably waives any      objection which it may now or hereafter have to the laying of the venue of      any such suit, action or proeeeding brought in such court and any claim      that such suit, action or proeeeding brought in such court has been      brought in an inconvenient forum and agrees that service of process in      accordance with the foregoing shall be deemed in every respect effective      and valid personal service of process upon such  party. |
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| 20. | Waiver of Breach. The      waiver by either party of a breach of any provision of this Agreement by      the other party must be in writing and shall not operate or be construed      as a waiver of any subsequent breach by such other  party. |
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| 21. | Entire Agreement; Amendments.      This Agreement contains the entire agreement between the parties      with respect to the subject matter hereof and supersedes all prior      agreements or understandings among the parties with respect thereof. This      Agreement may be amended only by an agreement in writing signed by the      parties hereto. |
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| 22. | Headings. The section      headings contained in this Agreement are for reference purposes only and      shall not affect in any way the meaning or interpretation of this      Agreement. |
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| 23. | Severability. Any      provision of this Agreement that is prohibited or unenforceable in any      jurisdiction shall, as to such jurisdiction, be ineffective to the extent      of such prohibition or unenforceability without invalidating the remaining      provisions hereof, and any such prohibition or unenforceability in any      jurisdiction shall not invalidate or render unenforceable such provision      in any other jurisdiction. |
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| 24. | 409A Compliance. The      intent of the Executive and the Company is that the severance and other      benefits payable to the Executive under this Agreement not be deemed      “deferred compensation” under, and shall otherwise comply with, Section      409A of the Internal Revenue Code of 1986, as amended. The Executive and      the Company agree to use reasonable best efforts to amend the terms of      this Agreement from time to time as may be necessary to avoid the      imposition of liability under Section 409A of the Code in any manner that      does not materially alter the substantive rights and obligations of the      parties hereunder. |
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| 25. | Executive’s Acknowledgement.      The Executive acknowledges (a) that the Executive has had the      opportunity to consult with independent counsel of his own choice      concerning this Agreement and (b) that the Executive has read and      understands the Agreement, is fully aware of its legal effect and has      entered into it freely based on the Executive’s own    judgment. |
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| 26. | Assignment. This      Agreement is personal in its nature and the parties hereto shall not,      without the consent of the other, assign or transfer this Agreement or any      rights or obligations hereunder; provided, that the provisions hereof      shall inure to the benefit of, and be binding upon, each successor of the      Company, whether by merger, consolidation, transfer of all or      substantially all of its assets orotherwise. |
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| 27. | Counterparts. This      Agreement may be executed in two or more counterparts, each of which shall      for all purposes constitute one agreement which is binding on all of the      parties hereto. |
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| EXECUTIVE                                                 |
|-----------------------------------------------------------|
|      /s/      Eric Richman  |
| Eric      Richman                                         |
|                                                      |
| PHARMATHENE,      INC.                                    |
|                                                      |   |
| By                                                        | /s/      David P. Wright   |
| Name:      David P. Wright                                |
| Title: President and Chief Executive    Officer           |

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